# Peaq: Leading Layer-1 Blockchain Integrating IoT and Web3 for Decentralized Physical Infrastructure Networks

Peaq is a Layer-1 blockchain that merges Internet of Things (IoT) and Web3 technologies to realize Decentralized Physical Infrastructure Networks (DePIN). The Peaq ecosystem currently links over 30 projects with more than 850,000 machines and devices operating across various environments, including land, sea, air, and space. With its blockchain foundation, Peaq revolutionizes interactions among IoT machines, establishing itself as a critical technology platform for communities and enterprises aspiring for decentralized economies.

Founded in 2017 by blockchain experts from Germany and Malta, Peaq initially sought effective methods to integrate IoT and Web3. However, the team soon recognized that existing infrastructure did not adequately support these capabilities. Consequently, they explored the technical requirements necessary to blend traditional IoT systems with blockchain. Collaborating with major companies like Audi, NTT, and Gucci, they developed enterprise IoT applications.

This experience led the Peaq team to build an independent Layer-1 blockchain specifically designed for IoT, resulting in the creation of the Peaq DePIN ecosystem in 2021. This innovation facilitates efficient global cooperation between machines and devices via decentralized infrastructure. Peaq garnered significant attention in 2024 by securing $35 million in initial funding from key investors such as Animoca Brands, HashKey Capital, and Borderless Capital.

## Peaq’s Key Technologies and Functions: Data Exchange Among Machines

Peaq’s technological prowess lies in its unique features that support efficient data exchange among various DePIN projects and IoT machines. Peaq employs a DPoS and NPoS (Nominated Proof of Stake) structure based on the Polkadot Relay Chain to enhance reliability and efficiency. Through Peaq ID, it offers self-sovereign identity for machines and devices, utilizing Decentralized Identifiers (DID) and Verifiable Credentials (VC) to enable secure data exchange and role-based access.

Peaq Access grants the capability to set access permissions for machines or devices based on specific roles, simplifying the implementation of Role-Based Access Control (RBAC) for developers. Peaq Pay streamlines transactions among machines or between machines and users, enhancing payment reliability through multisignature wallets.

Peaq Verify supports data verification—a crucial component of DePIN—by certifying machine origin (Tier 1), using pattern matching (Tier 2), and enabling oracle-based authentication (Tier 3) to ensure the accuracy and reliability of machines and devices.

Collaborations with Fetch.AI and Nevermined allow Peaq to support AI agents and automated workflows, optimizing the machine economy. Furthermore, Peaq boasts interoperability with major blockchains. It integrates natively with the Polkadot ecosystem via the XCM protocol and fully supports EVM compatibility with Ethereum. Additionally, Peaq connects with Cosmos, Binance BNB, and Solana, facilitating data exchange and the development of new applications across various networks.

Peaq currently processes up to 10,000 transactions per second (TPS) and aims to expand this capability to 100,000 TPS by 2025, maintaining a transaction cost of approximately $0.00025, balancing efficiency and speed.

## Peaq Token Economy and DePIN Ecosystem: Building a Network of Devices

Peaq’s native token ‘Peaq’ serves multiple roles within the network, including security, transaction fee payments, and governance participation. It adopts a deflationary model, reducing initial inflation from 3.5% by ten percent annually to ultimately reach 1%. This design balances increasing network transaction volumes with controlled inflation.

The Peaq DePIN ecosystem includes diverse projects like Silencio, which collects noise pollution data; XMAQUINA, operating tokenized robotic cafes; and MapMetrics, a community-based navigation system. These projects drive network growth by leveraging Peaq’s technology stack.

Peaq’s roadmap includes integrating with MetaMask wallets, building a staking dashboard, and integrating with Galxe and Particle Network to expand its ecosystem. Collaborations with Bosch and Fetch.AI are ongoing to develop smart devices, enhancing data collection and interaction.

Committed to supporting the DePIN ecosystem, the Peaq Foundation provides tailored assistance to enterprises and developers. In collaboration with Outlier Ventures, it offers up to $200,000 in funding and mentoring for entrepreneurs through the DePIN Base Camp program.

By presenting an alternative to traditional centralized systems, Peaq leads the way in building blockchain-based IoT infrastructure. Designing the future of decentralized economies, Peaq’s journey continues to attract attention through technological innovation and community-driven ecosystem expansion.